Tuesday, June 6, 2017

Blockchain can solve this

Liew, who traded precious metals for Deutsche Bank AG in Singapore, pleaded guilty last week to spoofing charges. (He also settled with the Commodity Futures Trading Commission for spoofing and triggering stop orders.) He has agreed to cooperate with prosecutors to go after some of the other things he witnessed/experienced.

Here we have an asynchronous tradebook in the sense that the disposition of gold is not fairly shared. This leaves open the possibility of spoofing by one or more traders in the big houses. They hint at a big gold sale, for example, and scare the short; but the big sale never goes through.

The Redneck trading architecture is all about fair access to the trade book, as is block chain. This all boils down to the fact that we are all two color traders, except the big houses who make markets, they are three color and it gives them an advantage. Not in the sandbox, we will automatically decompose the three color traders into a series of two colors, spawning trade pits as necessary. If that is not enough, then we are prepared to deploy fair three color pits with a known variance bounds, it jiust take more horsepower.